Calculate the present value of the bond issue

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Reference no: EM13258993

On January 1, 20x8, Xeraz Corporation issued $1,000,000 5 year bonddated Jan 1, 20x8 with interest payable on July 1 and Jan 1. The bonds had a face interest rate of 5%. The effective interest rate in the market is 8%. The company fiscal year end is December 31, 2008.

Question: Calculate the present value of the bond issue to determine its selling price.

Reference no: EM13258993

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